Minimizing Production Costs Per Unit Is Also Known As

question 88

Multiple Choice

Minimizing production costs per unit is also known as:

• A) allocative efficiency.
• B) allocative effectiveness.
• C) productive efficiency.
• D) productive effectiveness.

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Definitions:

Economy Strategy

An approach aiming for cost efficiency and minimized spending within a business or economic system.

Price Wars

A competitive strategy involving companies lowering prices to undercut competitors, often leading to a situation where prices continue to drop.

Profitability

A measure of the efficiency and financial performance of a company, often assessed by the ratio of its profits to its revenues.

Generic Strategy

A fundamental strategy a company can adopt to achieve a competitive advantage, typically categorized as cost leadership, differentiation, or focus.